Additional Information

Employee turnovercan be more expensive that you realize. The range most quoted is between three and seven times their salary. Look at the list of potential costs below and you soon realize the costs are more than you might have previously thought:

When they leave:

HR or managers salaries to debrief and process out

Severance pay if applicable

Unemployment compensation

Finding the replacement:

Advertising the position OR discussing who might be a candidate for moving up or over

Interviewing new candidates –

Human resources screening

Team meetings/interviews

Managers interview(s)

Testing new candidates –

Assessments

Skills tests

Drug tests

Physicals and Medical Exams

Training candidates

Safety training

Person specific equipment such as respirators, uniforms, etc.

Orientation training

Industry specific training

Other costs might include:

Travel expenses

Moving expenses

What should be but is often not included as a cost when they leave?

The lists above generally take into account the costs you can directly account for – the tangible costs. But there are other costs that may not be so obvious. Here is a brief list or potential costs to think about:

Losing one or more customers.

Lowered morale in other employees.

Reduced commitment from those that stay.

Increased workload on those that remain.

AND the potential for both employees, client and investors to start looking for instability in the organization.

Do you want a commitment from your employees to stay with your company?